The real stories from inside the F1 paddock

Glock signs for BMW, Marussia waits

Timo Glock has signed to race for BMW in the DTM in 2013, having been forced to give up his Formula 1 career because the Marussia F1 team needed money and had no choice but to ask him to settle his contract early and allow them to find a driver who could pay enough to top up the team’s 2013 budget, while also covering Glock’s pay-off.

The choice of drivers at Marussia is now down to money, although the decision seems to depend on who can get to a certain amount, rather than who is the first to get to that amount. This seems to be the same policy as had been adopted by Caterham and perhaps also by Force India, which would explain why all three are in no apparent hurry to announce their driver line-ups for 2013. It is, as I have previously reported, a buyer’s market and the onus is on the drivers who are rushing about looking for sponsorships and bank guarantees to get themselves into an F1 car, or to keep an F1 seat, is some cases. One should add that not all the sponsors that have been kicking around in the past want to switch allegiance to lesser teams, while there are also strategic elements involved in some cases, as Bernie Ecclestone, for example, would like to see drivers from the booming BRIC economies so as to maximise the earning potential for the sport in these markets. Teams too have strategic goals as well, depending on the business they are in, both it is fair to say that Marussia, for example, might benefit most in marketing terms by having a Russian driver; while Caterham might prefer to have an Asian. In the end, they all have budgets that they are aiming to achieve and so they will make a decision either when time runs out or when they have a driver (and a budget) that they are satisfied with.

17 Responses

If Mr. E wishesto see drivers from the BRIC countries then perhaps he and CVC should re-invest some of the extortionate fees they have paid to take races from proper circuits to Tilkedromes into the infrastructure required to support them locally and through to the (at least currently) mainly Euro-based feeder series that provides them to F1

Looks like Force India are settling on either Bianchi or Sutil. I think that’s a mistake when drivers like Kobayashi and Kovalainen are side-lined. Caterham and Marussia will likely sign anyone who can pay a big cheque.

Petrov makes more and more sense. Wasn’t there some question about how much his sponsors were actually bringing in though?

It would have been nice to see Senna get a seat, preferably for just one or two ‘clean’ seasons without losing his friday drives – just so he could put to rest whether he’s a genuine talent hindered by circumstance or really not F1 material. Not looking too likely though now is it.

How sad it has come to this. 10-15 of the best drivers in the world plus a handful of rich kids and corporate favorites to make up the grid. What a shame. They should call this the Karthikayen effect
The only team I can see not eventually selling out to the highest bidder is Caterham. However we won’t know until the football transfer window is over as to whether Redknapp has made Tony spend all of his cash. The fee for Loic Remy was probably Heiki’s pay check for the next couple of years so we can probably count him out of the picture.
If I win the lottery this weekend, look out for me in 2014

I cannot understand why you would think this. The F1 world has always had a percentage of funded drivers at the back end of the grid. It is nothing new and indeed money has been a key element in the sport since the very beginning. As to the modern teams, I cannot understand why you would think Caterham is the most likely to change hands. The Caterham F1 team and QPR are part of a fairly large strategic plan to publicise the various businesses of the partners involved. The sums involved are relatively modest when offset against potential revenues and advertising value compared to, for example, the cost of building up a new fleet of airliners; or funding the Caterham-Alpine alliance. I fully understand that the partners might not be very happy with the level of progress after three years and wish to restrict spending in 2013 while the effects of the other investments come to fruition, but I do not see anyone walking away. It just does not make business sense – unless they have to. I see several other F1 teams (and their owners) in significantly more difficulties keeping up with the money supply. One might argue that there is a case for an industrial alliance between Caterham and Marussia (and Renault) to make fancy cars for the Russian markets, but one cannot merge F1 teams without having to write-off very large sums of money – so that does not really make sense. The only logical way forward for both teams is to improve performance and thus win more money and attract more sponsorship. Similarly, if QPR can get better results it will win more money and then be able to invest is a new stadium which will then increase earnings considerably. As the industrial plans aim for sizeable longterm profits, there is an incentive to pursue the path planned. Whether they make it or not is another matter, but in competition with teams that have no business raison d’être, beyond simply being racing teams, they should in the end have an advantage, if they are managed properly.

What I meant when talking Caterham was just the drivers market not the team being sold. I think they are most likely out of the teams left to confirm a driver, to pay a drivers salary instead of going with who brings the most cash. However I think/thought (maybe you corrected me) that a lot will depend on QPR and how much they buy and sell before the transfer market closes in a few weeks and right in the same week as F1 testing begins. Maybe I just can’t fathom that much money to see that they (Caterham and QPR) don’t have an effect on one another. All said Remy cost 8 million with a weekly salary of 75k a week roughly 4 mil per year for 4 years. That’s an F1 drivers salary right there if a team pays it instead of it coming out of money being brought in by a driver. I just assumed that Tony watched his money a lot closer hence why he has money left over to buy more jumbo jets etc. That is why I thought the football team might have an effect on the Current F1 drivers market and the fact that Caterham has not confirmed their driver line up yet.
I’m sure you are right Joe that the sums involved are modest in the grand scheme of things but that is only relative if the gamble/planned path works and he can keep the football team in the top flight, not even successful which they will still be far from and still in a stadium that holds so few it barely contributes to paying the bills. Hence why Fav and Bernie hiked the prices up when they owned it. They are currently bottom of the league 5 points from safety.
I just hope the path of Tonys 8 million pound plus investment in one football player versus one F1 driver will pay off for him.

there are also strategic elements involved in some cases, as Bernie Ecclestone, for example, would like to see drivers from the booming BRIC economies so as to maximise the earning potential for the sport in these markets.

Just curious, how would this manifest itself? I’m not presuming you mean he opens his wallet, but can he crowbar some spondulicks out of CVC if they believe there’s ROI?

Otherwise how can there be a ‘strategic’ interest that anyone would care about? Bernie wants BRIC exposure – so what? “We have a P&L to look after and a racing team to run”

I’m never sure just what levers Mr E has available to him, is what I guess I’m saying.